Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Thursday March 20.
Wake Up And Smell The Mobile Payments: Starbucks (NASDAQ:SBUX)
What if a company came public that allowed you to make payments before you even walk into a store? Cramer thinks such a company would have a high valuation, but would likely be acquired by a giant. This kind of company is already buried within another company, which is Starbucks (SBUX). This stock has become a great stealth technology company that will be able to license this technology. SBUX has the best innovation in the industry, but it is a coffee and tea company, not a classic tech company. Cramer worries this great story could get lost within SBUX's coffee and tea business. SBUX management needs to figure out how big it wants this division to be, who its competitors are, and whether or not to make acquisitions to expand it. This is "the highest of high quality problems" for SBUX. Cramer thinks SBUX is one of the cheapest stocks in the market, even after its incredible run.
Financials and Tech Are Leaders: Citigroup (NYSE:C), Intel (NASDAQ:INTC), 3D Systems (NYSE:DDD), Hewlett-Packard (NYSE:HPQ), Microsoft (NASDAQ:MSFT). Other stock mentioned: Caterpillar (NYSE:CAT)
The Dow jumped 109 points, with financials and tech leading the market. Cramer thinks that this leadership is a good sign, because once these two sectors advance, it is difficult to stop them. Citigroup (C) and Intel (INTC) are examples of bad houses in a neighborhood that is increasing in value. Among banks, Citigroup was the most challenged, particularly in emerging markets, and Intel was being rescued by its yield. While in general, stocks are overvalued, these two sectors are undervalued. Cramer would beware of froth in 3D printing stocks, such as 3D Systems (DDD), which is falling since it was announced that Hewlett-Packard (HPQ) is moving into the 3D printing space. Cloud stocks are "froth personified," and Cramer would be careful of investing in hot biotechs after their IPOs.
Cramer took a call:
Caterpillar (CAT) makes great machines. It reported bad numbers, but the stock didn't go down, which is a healthy sign. Caterpillar is a buy on its current weakness.
Off The Charts--March Madness Edition: Domino's (NYSE:DPZ), Papa John's (NASDAQ:PZZA), Molson Coors (NYSE:TAP), Buffalo Wild Wings (NASDAQ:BWLD). Other stock mentioned: Dunkin' Brands (NASDAQ:DNKN)
In honor of March Madness, Cramer went "off the charts" with technical analyst Ed Ponsi and took a look at 4 stocks which are associated with and should benefit from March Madness. He compared the charts of Domino's (DPZ) and Papa John's (PZZA) which are showing almost identical action; both have resisted recent selloffs and are finding support at their 50 day moving averages. DPZ is winning by a narrow margin, because it has sold off on lower volume than PZZA.
Molson Coors (TAP) has a tremendous chart which shows a long-term uptrend with a series of higher highs. However, Buffalo Wild Wings' (BWLD) chart wins this contest, because it has two reliably bullish signals: a cup and handle formation and an ascending triangle.
BWLD and DPZ were the two "finalists" in the playoff, and while Cramer thinks both stocks are winners, BWLD is breaking out and could rise $22 to $175 in the near future. Now is BWLD's time to shine.
Cramer took a call:
Dunkin' Donuts (DNKN) is not doing the same thing Starbucks is doing, but they are both good stocks.
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